{"id":818,"date":"2011-04-06T21:48:36","date_gmt":"2011-04-06T21:48:36","guid":{"rendered":"http:\/\/www.itmtrading.com\/blog\/?p=818"},"modified":"2011-04-06T21:48:36","modified_gmt":"2011-04-06T21:48:36","slug":"silver-is-on-everyones-mind","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/silver-is-on-everyones-mind\/","title":{"rendered":"Silver is on Everyone\u00e2\u20ac\u2122s Mind"},"content":{"rendered":"

Silver seems to be the talk these days in the precious metals world.\u00c2\u00a0 Anything from the historical gold\/silver ratio, past performance, JP Morgan\u00e2\u20ac\u2122s short contracts to Tomahawk missiles, but one thing is for certain, silver<\/a> is climbing fast.<\/p>\n

I get this question a lot being in the precious metals industry: \u00e2\u20ac\u0153How do you feel about silver compared to gold.\u00e2\u20ac\u009d\u00c2\u00a0 I always answer with this: \u00e2\u20ac\u0153Silver and gold do tend to rise together, and up until last year they both averaged around 17.35% appreciation per year for 9 years in a row.\u00c2\u00a0 So they tend to end up in the same place (appreciation wise), silver just tends to be more volatile.\u00e2\u20ac\u009d<\/p>\n

Here are two charts priced in US Dollars comparing the performance of both silver and gold from 2001 to 2009:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n
GOLD<\/strong><\/td>\nUSD<\/strong><\/td>\nSILVER<\/strong><\/td>\nUSD<\/strong><\/td>\n<\/tr>\n
2001<\/strong><\/td>\n2.5%<\/td>\n2001<\/strong><\/td>\n-0.1%<\/td>\n<\/tr>\n
2002<\/strong><\/td>\n24.7%<\/td>\n2002<\/strong><\/td>\n4.8%<\/td>\n<\/tr>\n
2003<\/strong><\/td>\n19.6%<\/td>\n2003<\/strong><\/td>\n24.0%<\/td>\n<\/tr>\n
2004<\/strong><\/td>\n5.2%<\/td>\n2004<\/strong><\/td>\n14.3%<\/td>\n<\/tr>\n
2005<\/strong><\/td>\n18.2%<\/td>\n2005<\/strong><\/td>\n29.6%<\/td>\n<\/tr>\n
2006<\/strong><\/td>\n22.8%<\/td>\n2006<\/strong><\/td>\n45.3%<\/td>\n<\/tr>\n
2007<\/strong><\/td>\n31.4%<\/td>\n2007<\/strong><\/td>\n15.4%<\/td>\n<\/tr>\n
2008<\/strong><\/td>\n5.8%<\/td>\n2008<\/strong><\/td>\n-23.8%<\/td>\n<\/tr>\n
2009<\/strong><\/td>\n23.9%<\/td>\n2009<\/strong><\/td>\n49.3%<\/td>\n<\/tr>\n
Average<\/strong><\/td>\n17.1%<\/strong><\/td>\nAverage<\/strong><\/td>\n17.6%<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

If you take into account 2010 the average for gold jumps to 18.37% per year and silver jumps to 24.22%.\u00c2\u00a0 Last year silver jumped 83.44%.\u00c2\u00a0 So you can see why there has been a lot of attention on silver as of late.\u00c2\u00a0 Not to mention silver has jumped 27.95% so far this year.\u00c2\u00a0 The thing about silver is the correction years.\u00c2\u00a0 The underlying trend is positive but silver has shown that it can correct and can correct big.<\/p>\n

As far as the gold\/silver ratio there is a lot of talk about the historical ratio<\/a> at 1\/16. \u00c2\u00a0Meaning the price of silver has been as low as 1\/16th<\/sup> the price of gold.\u00c2\u00a0 With gold at $1,459 per ounce today that would mean that silver would need to be trading at $91.18 per ounce today to be at 1\/16th<\/sup> the price of gold.\u00c2\u00a0 This is where most of the excitement lies around silver.\u00c2\u00a0 People believe that this ratio will again be achieved. Time will only tell.<\/p>\n

I read the other day that each tomahawk missile that the US blows up has over 500oz of silver in it, so as a nation we are destroying the supply.<\/p>\n

A concern for the downside of silver is JP Morgan\u00e2\u20ac\u2122s manipulation of the silver market for years now.\u00c2\u00a0 In a recent hearing the CFTC voted to continue to allow JP Morgan to naked short the market for silver, which artificially pushes prices down.\u00c2\u00a0 Therefore if JP Morgan really wanted to push the price down dramatically all they would need to do is buy more naked shorts.<\/p>\n

So there are arguments for silver both ways, what else is new.\u00c2\u00a0 What is important is to add precious metals<\/a> to your portfolio to give yourself the ultimate hedge.<\/p>\n","protected":false},"excerpt":{"rendered":"

Silver seems to be the talk these days in the precious metals world.\u00c2\u00a0 Anything from the historical gold\/silver ratio, past performance, […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[71,97,114],"class_list":["post-818","post","type-post","status-publish","format-standard","hentry","category-blog","tag-gold-trend","tag-performance","tag-silver-2"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=818"}],"version-history":[{"count":0,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/818\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}